LAHORE: The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), has stressed the need for amending rules, simplifying tax laws, and automating the business processes to bring transparency in the system, so that the SME sector of the value-added textile industry could be facilitated and exports could be enhanced.
The views were expressed by Adeeb Iqbal Sheikh, PRGMEA north zone chairman, in a meeting with Input Output Coefficient Organization (IOCO) Additional Director North, Lahore. The meeting was held to evaluate rates of duty drawbacks on exported goods of garment industry.
He called for implementing the vision of the Prime Minister Imran Khan to simplify the export scheme, providing new incentives for the business community to help export industry keep abreast of latest developments and trends in the technology.
PRGMEA industry leader also pointed out the severe cash flow crunch that has squeezed productivity resulting in reduced exports as billions of rupees are blocked and demanded of the government to release all stuck-up claims of exporters immediately.
Adeeb Iqbal said that almost half of the exporters find it hard to comply with trade-related regulations or procedures in the country and abroad.
He stated that better integration with the global value chain and increased exports are important for Pakistan’s economic development through job creation, especially for youth and women.
PRGMEA regional chief observed that billions of untapped export potential is at risk, due to market frictions such as lack of transparency and related non-tariff measures, especially for small businesses.
He said that trade regulations and processes must be streamlined to facilitate exports. A policy rethink is needed on advance payment restrictions on raw material imports and processes involving the duty drawback scheme.
Export inspection processes at the customs also should be improved. Supporting small businesses to achieve export success also requires a clear understanding of the challenges they face.
He continued to cite the high costs of doing business, saying that the industry has been competing in the global market without the support or a proper plan while major competitors like India and China had been utilizing all channels and resources.
The Additional Director, on this occasion, pointed out that the Federal Board of Revenue had established the Directorate General Input Output Coefficient Organization (IOCO) some two years back with a view to look after evaluation of rates of duty drawbacks on exported goods and rates of input output of goods in liaison with the private sector.
The Pakistan Customs has revised upwards rates of Duty Drawback for various sectors. The rates have been revised in accordance with the factual determination by IOCO after revision in valuations of input items under the government vision of “Make in Pakistan” in view of increasing the global competitiveness of our products and contribute towards export-led growth.
